Capstone Final
Which statement below is false? A. Strategic management must not become ritualistic, stilted, orchestrated, or too formal, predictable, and rigid. B. Words supported by numbers, rather than numbers supported by words, should represent the medium for explaining strategic issues and organizational responses. C. Numbers supported by words, rather than words supported by numbers, should represent the medium for explaining strategic issues and organizational responses. D. R.T. Lenz says a guideline to follow in strategic planning is to welcome bad news and encourage devil's advocate thinking. E. B and D
C. Numbers supported by words, rather than words supported by numbers, should represent the medium for explaining strategic issues and organizational responses.
A quote from Chapter 7 is that "_______________ may be the single-greatest threat to successful strategy implementation." A. Social media rumor versus fact B. Ineffective organizational structure C. Resistance to change D. Low customer loyalty E. Data breaches
C. Resistance to change
Which statement below is false? A. The primary benefit sought from restructuring is cost reduction. B. Restructuring is concerned primarily with shareholder well-being rather than employee well-being. C. Restructuring is concerned primarily with employee well-being rather than shareholder well-being. D. A and B E. B and C
C. Restructuring is concerned primarily with employee well-being rather than shareholder well-being.
As described in Chapter 9, what is the first strategy-evaluation activity? A. Measure performance of the firm across all products and regions. B. Establish a clear vision and mission statement. C. Review the underlying bases of strategy. D. Establish clear objectives. E. Formulate strategies.
C. Review the underlying bases of strategy.
The top 20 most valuable college football programs are listed in the chapter in terms of their monetary value. What team is most valuable? A. Michigan Wolverines B. LSU Tigers C. Texas Longhorns D. Notre Dame Fighting Irish E. Alabama Crimson Tide
C. Texas Longhorns
In terms of megawatts of wind power generated by various states in the nation, _____ 8,000 megawatts dwarf all other states. A. Alaska's B. California's C. Texas's D. New Jersey's E. Hawaii's
C. Texas's
________________ refers to employees reporting any unethical violations they discover or see in the firm. A. Regurgitating B. Snooping C. Whistle-blowing D. Eavesdropping E. Tattle-telling
C. Whistle-blowing
In Europe, it is generally true that the farther ____ on the continent, the more participatory the management style. A. southwest B. west C. north D. east E. south
C. north
In both the BCG and IE Matrices, the size of each circle represents the percentage of _______ contribution of each division, and pie slices reveal the percentage of _____ contribution of each division to the company. A. sales; net income B. revenues; earnings C. sales; profits D. revenues; retained earnings E. A, B, and C
C. sales; profits
The Equal Employment Opportunity Commission (EEOC) defines _____________ broadly as unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature. A. prostitution B. flirting C. sexual harassment D. sexual discrimination E. workplace romance
C. sexual harassment
In Japan, business relations operate within the context of _____, which stresses group harmony and social cohesion. In China, business behavior revolves around ______, or personal relations. In South Korea, activities involve concern for _____, or harmony based on respect of hierarchical relationships, including obedience to authority. A. Wa; Inhwa; Guanxi B. Guanxi; Inhwa; Wa C. Wa; Guanxi; Inhwa D. Guanxi; Wa; Inhwa E. Inhwa; Guanxi; Wa
C. Wa; Guanxi; Inhwa
Which of the following actions is listed in Chapter 10 as unethical? A. Overpricing B. Misleading advertising or labeling C. Insider trading D. A, B, and C E. A and B
D. A, B, and C
Exports of goods and services from the United States account for what percent of U.S. gross domestic product (GDP)? In contrast, as a percent of gross domestic product, exports comprise what percent of the German economy? A. 33.5; 65.6 B. 10; 50 C. 3.5; 25.6 D. 13.5; 45.6 E. 53.5; 85.6
D. 13.5; 45.6
Women make up only ______ percent of board members at companies in the S&P 500, but in 2014, ______ percent of new board members appointed were women. A. 49; 59 B. 9; 19 C. 29; 39 D. 19; 29 E. 39; 49
D. 19; 29
What are the corporate tax rate percentages in the United States, Mexico, and Canada, respectively? A. 30; 25; 20 B. 35; 25; 30 C. 35; 30; 25 D. 35; 30; 15 E. 30; 30; 25
D. 35; 30; 15
Any industry whose annual growth in sales exceeds ______ percent could be considered to have rapid growth. A. 20 B. 10 C. 15 D. 5 E. 25
D. 5
A Wall Street Journal article recapped U.S. standards regarding boss-and-subordinate love affairs at work. Only _____ percent of all firms sampled had no restrictions on such relationships; _____ percent of firms have policies that prohibit relationships between a supervisor and a subordinate. A. 80; 5 B. 5; 30 C. 80; 30 D. 5; 80 E. 30; 80
D. 5; 80
For maximum effectiveness, how many board of director members should there be for a company, according to Lublin and Yermack? A. 17 B. 11 C. 15 D. 9 E. 13
D. 9
Fully ___ percent of the world's population lives outside the United States, and this group is growing ___ percent faster than the U.S. population. A. 55; 60 B. 55; 30 C. 75; 60 D. 95; 70 E. 55; 40
D. 95; 70
What two criteria does an excellent product positioning map meet? A. It uniquely distinguishes a company from the competition. B. It leads to an effective target market. C. It leads customers to expect slightly less service than a company can deliver. D. A and C E. A and B
D. A and C
Limitations of EPS/EBIT analysis include: A. dividends and EBIT ranges. B. continuity and extent leveraged. C. timing, control, and flexibility. D. A, B, and C E. A and C
D. A, B, and C
Which factor below commonly prohibits effective resource allocation? A. Overprotection of resources B. Too great an emphasis on short-run financial criteria C. A reluctance to take risks D. A, B, and C E. A and B
D. A, B, and C
Which tactic(s) is a potential labor cost-saving production/operations method? A. Furlough B. Reduction of employee 401(k) match C. Voluntary buyouts D. A, B, and C E. A and C
D. A, B, and C
In developing projected financial statements, how do you calculate retained earnings on the balance sheet? A. Use a percentage of sales method based on the prior 3 years coupled with the company's strategies. B. Use retained earnings as the plug figure to make the balance sheet balance. C. Add the net income to the prior year's retained earnings. D. Add the net income less dividends to the prior year's retained earnings. E. Use a percentage of sales methods based on the prior 3 years.
D. Add the net income less dividends to the prior year's retained earnings.
Three marketing activities are especially important in strategy implementation and thus are discussed as major sections in Chapter 8. Which activity is not one of the three? A. Engage customers in social media. B. Develop and use product-positioning/perceptual maps. C. Segment markets effectively. D. Advertise products effectively. E. B and D
D. Advertise products effectively.
In Academic Capsule 11-2, titled "How Do Firms Decide Where to Expand?" Arregle and colleagues came to what conclusion? A. Companies seek to expand primarily to regions that have laws and values similar to their own institutions. B. Companies seek to exploit resources in host countries. C. Companies seek to expand primarily to regions that have the lowest corporate tax rates. D. Companies seek to expand primarily to regions that have institutions similar to their own. E. Companies seek to expand primarily to regions that have political and economic stability.
D. Companies seek to expand primarily to regions that have institutions similar to their own.
Which publication annually publishes the "World's Most Admired Companies," which provides helpful strategy-evaluation information? A. Investor's Business Daily B. Business Week C. Wall Street Journal D. Fortune E. Forbes
D. Fortune
When evaluating strategies, GAAS stands for what term? A. Generally accepted administrative standards B. Generally accepted administrative scales C. Generally accepted actuary standards D. Generally accepted auditing standards E. Generally accepted actuary scales
D. Generally accepted auditing standards
When evaluating strategies, IFRS stands for what term? A. Interim financial ratio standards B. International financial ratio standards C. Interactive financial reporting standards D. International financial reporting standards E. Interim financial reporting standards
D. International financial reporting standards
An increasing number of U.S. companies are reincorporating in foreign countries to reduce their tax burden, typically doing this by acquiring a foreign firm. What is this process/transaction called? A. Conversion B. Outsourcing C. Reengineering D. Inversion E. Realignment
D. Inversion
Some hotel chains, such as ________, are holding off on using smartphones as keys until potential security issues can be resolved. A. Motel 6 B. Starwood Hotels and Resorts C. Hilton Worldwide D. Marriott E. Super 8 Motels
D. Marriott
In a QSPM analysis, would it ever be appropriate or useful for a company to not include a weight column at all, but rather just sum the AS columns to determine the relative attractiveness of six strategies? A. Yes but only for nonprofit organizations B. Yes but only for multi-divisional companies C. Yes D. No E. Yes but only for small firms
D. No
Which statement below is false? A. Reengineering does not usually affect the organizational structure or chart. B. Reengineering does not usually imply job loss or employee layoffs. C. Reengineering is characterized by many tactical (short-term, business functiondash-specific) decisions. D. None of the above E. A, B, and C
D. None of the above
Which statement below is false? A. There are certainly good reasons to keep the strategy process and strategies themselves visible and open rather than hidden and secret. B. The Chinese warrior Sun Tzu and military leaders today strive to keep strategies secret, because war is based on deception, but for business organizations, secrecy may not be best. C. There are good reasons to keep strategies hidden from all but top-level executives. D. Keeping strategies secret from employees and stakeholders at large could severely inhibit employee and stakeholder communication, understanding, and commitment, as well as forgo valuable input that these persons could have regarding formulation or implementation of that strategy. E. None of the above
E. None of the above
Which statement below is false? A. Wal-Mart wants the use of battery cages for chickens, gestation crates for hogs, and veal crates for cows to be eliminated, although such small confined areas are currently used to raise many chickens, pigs, and cows in the United States. B. The total area of fully protected marine habitats in the United States is only about 50 square miles, compared with some 93 million acres of national wildlife refuges and national parks on the nation's land. C. Trawl fishing with nets destroys coral reefs and has been compared to catching squirrels by cutting down forests because bottom nets scour and destroy vast areas of the ocean. D. B and C E. None of the above
E. None of the above
Four reasons to be completely open with the strategy process and resultant decisions are given in the chapter, and include all of the following statements except which one? A. Participation and openness enhance understanding, commitment, and communication within the firm. B. Visibility promotes democracy, whereas secrecy promotes autocracy. Domestic firms and most foreign firms prefer democracy over autocracy as a management style. C. Investors, creditors, and other stakeholders have greater basis for supporting a firm when they know what the firm is doing and where the firm is going. D. Participation and openness lead to conciseness and accuracy. E. Managers, employees, and other stakeholders can readily contribute to the process. They often have excellent ideas. Secrecy would forgo many excellent ideas.
D. Participation and openness lead to conciseness and accuracy.
Who said: "When wealth is lost, nothing is lost; when health is lost, something is lost; when character is lost, all is lost." A. President Obama B. Albert Einstein C. President Kennedy D. Rev. Billy Graham E. Rev. Martin Luther King, Jr.
D. Rev. Billy Graham
Which statement is false? A. Sometimes firms will thus increase their treasury stock near the end of the quarter, or near the end of the year, to "artificially" inflate their EPS. B. Normally, in developing projected financial statements, the cash account is used as the plug figure. C. Another name for the balance sheet account—additional-paid-in-capital—is capital surplus. D. A and B E. None of the above
E. None of the above
What statement below is false? A. Conflict is not always bad. B. Conflict can serve to energize opposing groups into action. C. Conflict may help managers identify problems. D. A and C E. None of the above.
E. None of the above.
Which statement below is false regarding the strategic-planning process? A. Strategic planning should be a people process more than a paper process. B. Strategic decisions require trade-offs such as long-range versus short-range considerations or maximizing profits versus increasing shareholders' wealth. C. It should vary assignments, team memberships, meeting formats, and even the planning. D. It is a critical mistake for managers to pursue too many strategies at the same time. E. None of the above.
E. None of the above.
Which statement below is not a guideline for effective strategic planning, according to R. T. Lenz? A. Keep the process simple and easily understandable. B. Welcome bad news and encourage devil's advocate thinking. C. Eliminate vague planning jargon. D. Do not allow technicians to monopolize the planning process. E. None of the above.
E. None of the above.
Which statement below is false? A. Successful strategists let weakly supported ideas and proposals die through inaction. B. Successful strategists establish additional hurdles or tests for strongly supported ideas considered unacceptable but not openly opposed. C. Successful strategists keep a low political profile on unacceptable proposals and strive to let most negative decisions come from subordinates or a group consensus. D. A & B E. None of the above.
E. None of the above.
Which term below should be avoided in stating annual objectives? A. Maximize B. Minimize C. As soon as possible D. A, B, and C E. None of the above.
E. None of the above.
________ refers to countries imposing tariffs, taxes, and regulations on firms outside the country to favor their own companies and people. Most economists argue that engaging in this activity harms the world economy because it inhibits trade among countries and invites retaliation. A. Imposition B. Nationalism C. Outsourcing D. Reshoring E. Protectionism
E. Protectionism
Which statement below is not a Table 7-10 guideline for developing an organizational chart? A. Make sure functional executives such as CFO, CIO, CMO, CSO, R&D, CLO, CTO, and HRM report to the CEO, not to the COO. B. Decentralize, using some form of divisional structure, whenever possible. C. Make sure span of control is reasonable, probably no more than 10 persons reporting to any other person. D. Use an SBU type structure for large, multidivisional firms. E. Reserve the title president for the CEO of the firm.
E. Reserve the title president for the CEO of the firm.
What country are we talking about here? Internet penetration has grown to 44 percent among the country's 90 million people, up from 12 percent a decade ago. Unlike North Korea, the country is booming for business. The market for e-commerce in this country generates $4 billion in revenue annually and is growing dramatically. Telecommunications companies in this country, such as Viettel Mobile, provide the lowest data prices in the world at just over $3 per gigabyte. People in this country are among the most prevalent watchers of videos on smartphones in the world. The number of active mobile social media accounts rose 41 percent from January 2014 to January 2015long dash—a higher growth rate than China, India, or Brazil. Facebook has over 30 million active users in this country, up from 8.5 million in 2012. A. Singapore B. Malaysia C. Taiwan D. Vietnam E. Turkey
D. Vietnam
According to the ISO 14001 standard, a community or organization is required to put in place and implement a series of practices and procedures that, when taken together, result in a/an ________________. A. environmental annual report B. sustainability report C. environmental report card D. environmental management system (EMS) E. sustainability certification system
D. environmental management system (EMS)
American managers in China have to be careful about how they arrange office furniture because Chinese workers believe in feng shui, the practice of harnessing natural forces. Also, U.S. managers in Japan have to be careful about nemaswashio, whereby Japanese workers expect supervisors to alert them privately of changes rather than informing them in a meeting. A. guanxi; inhwa B. nemaswashio; feng shui C. wa; guanxi D. feng shui; nemaswashio E. inhwa; wa
D. feng shui; nemaswashio
The marketing mix component variables, also called the 4 P's of marketing, are: A. personal selling, place, publicity, and price. B. publicity, price, personal selling, and place. C. product, publicity, packaging, and price. D. product, place, promotion, and price. E. price, place, publicity, and packaging.
D. product, place, promotion, and price.
A(n) _____________ reveals how a firm's operations impact the natural environment. This document discloses to shareholders information about the firm's labor practices, product sourcing, energy efficiency, environmental impact, and business ethics practices. A. form 10K B. Annual Report C. environmental report card D. sustainability report E. form 8K
D. sustainability report
There is great variation across Europe with regard to levels of union membership, ranging from what percent of employees in Finland to what percent in France? A. 30; 70 B. 70; 30 C. 8; 74 D. 74; 8 E. 91; 19
D. 74; 8
Which statement below is false? A. The Mintzberg philosophy insists on informality, whereas strategy scientists (and this text) insist on more formality. B. Mintzberg refers to strategic planning as an "inevitable" process, whereas strategy scientists use the term "absolute" process. C. Mintzberg's notion of "crafting" strategies embodies the artistic model, which suggests that strategic decision making be based primarily on holistic thinking, intuition, and creativity. D. This textbook rejects the Mintzberg philosophy. E. B and D
E. B and
Which statement below is false? A. This textbook is consistent with most of the strategy literature in advocating that strategic management be viewed more as a science than an art. B. Mintzberg's notion of "crafting" strategies embodies the artistic model, which suggests that strategic decision making be based primarily on holistic thinking, intuition, creativity, and imagination. C. The Mintzberg strategic-planning approach insists on informality, whereas strategy scientists (and this text) insist on more formality. D. B and C E. None of the above
E. None of the above
The divisional structure can be organized in what way? A. By customer B. By process C. By geographic area D. A and C E. A, B, and C
E. A, B, and C
Fill in the two blanks. An industry can be stable or unstable on SP, yet high or low on IP. The smartphone industry, for instance, would be unstable (_____) on SP yet high-growth on IP, whereas the canned food industry would be stable (_____) on SP yet low-growth on IP. A. -3; -3 B -2; -6 C. -6; -6 D. -2; -2 E. -6; -2
E. -6; -2
Since the 1980s, most countries have been steadily lowering their tax rates, but the United States has not cut its top statutory corporate tax rate since when? A. 1953 B. 2010 C. 1810 D. 1910 E. 1993
E. 1993
The Summer Institute of Linguistics (SIL) International has done pioneering work to document the number of different languages spoken. How many translations of the Christian Bible does this organization publish today? A. 8,508 B. 5,508 C. 508 D. 1,508 E. 2,508
E. 2,508
R&D spending in China increased to about $___ billion in 2014, up ___ percent from 2012. In contrast, R&D spending in the United States grew about ___ percent to $____ billion during the same period. A. 225; 26; 62; 115 B. 46; 4; 8; 92 C. 465; 4; 22; 285 D. 115; 62; 26; 225 E. 285; 22; 4; 465
E. 285; 22; 4; 465
The strategy-formulation analytical framework consists of how many stages and how many matrices? A. 3 and 10 B. 2 and 8 C. 3 and 8 D. 4 and 10 E. 3 and 9
E. 3 and 9
Overall, in Asia, women comprise only ___ percent of corporate board seats, compared with ___ percent in Europe and ___ percent in the United States. A. 17; 37; 55 B. 6; 37; 55 C. 37; 55; 15 D. 6; 37; 17 E. 6; 17; 15
E. 6; 17; 15
The ocean covers more than ____ percent of the earth. A. 61 B. 41 C. 51 D. 31 E. 71
E. 71
The strategy-evaluation process includes three basic activities. Which activity(s) below is not one of the three? A. Establish clear objectives. B. Develop a clear vision and mission. C. Take corrective actions to ensure that performance conforms to plans. D. Compare expected results with actual results. E. A and B
E. A and B
A disadvantage of a functional structure is as follows: A. It forces accountability to the top. B. It minimizes career development opportunities. C. It leads to poor delegation of authority. D. A and B E. A, B, and C
E. A, B, and C
Advantages of keeping the strategic-planning process secret include which statement below? A. Secrecy limits criticism, second-guessing, and hindsight. B. Participants in a visible strategy process become more attractive to rival firms, who may lure them away. C. Secrecy limits rival firms from imitating or duplicating the firm's strategies and undermining the firm. D. A and B E. A, B, and C
E. A, B, and C
In contrast to strategy formulation, strategy implementation focuses more on which item below? A. Efficiency rather than effectiveness B. Motivation skills rather than analytical skills C. Leadership skills rather than intuitive skills D. B & C E. A, B, and C
E. A, B, and C
What is a major limitation of the BCG Matrix? A. Many businesses fall right in the middle of the BCG Matrix and thus are not easily classified. B. The BCG Matrix does not reflect whether various divisions or their industries are growing over time. C. Other variables besides the two used—such as size of the market and competitive advantages—are important in making strategic decisions about various divisions. D. A and B E. A, B, and C
E. A, B, and C
Contingency plans should be established under what condition? A. If a new technological advancement makes a new product obsolete sooner than expected B. If demand for a new product exceeds plans C. If a major competitor withdraws from particular markets as intelligence reports indicate D. If sales objectives are not reached E. All of the above
E. All of the above
Schein indicated that the following element is most useful in linking culture to strategy: A. Designing of physical spaces, facades, and buildings B. Explicit reward and status system and promotion criteria C. Deliberate role modeling, teaching, and coaching by leaders D. How the organization is designed and structured E. All of the above
E. All of the above
Which statement is a limitation of the SWOT? A. There are no weights, ratings, or numbers in a SWOT analysis. B. SWOT does not show how to achieve a competitive advantage, so it must not be an end in itself. C. SWOT is a static assessment (or snapshot) in time. D. SWOT analysis may lead the firm to overemphasize a single internal or external factor in formulating strategies. E. All of the above.
E. All of the above.
Which statement below is false? A. If you have more than one strategy in the QSPM, then let the AS scores range from 1 to "the number of strategies being evaluated." B. In a QSPM, if you assign an AS score to one strategy, then assign an AS score(s) to the other—in other words, if one strategy receives a dash, then all others must receive a dash in a given row. C. In a QSPM, an AS value of 4 is 33 percent more important than a 3. D. In a QSPM, never rate one strategy and not the other. E. All statements are true
E. All statements are true
Which statement below is false? A. Complex strategy-evaluation systems often confuse people and accomplish little. B. Managers in small companies often communicate daily with each other and their employees, and do not need extensive evaluative reporting systems. C. No department should fail to cooperate with another in evaluating strategies. D. Strategy evaluations should be simple, not too cumbersome, and not too restrictive. E. All statements are true.
E. All statements are true.
Which statement below is false? A. FASB Rule 142 requires companies to admit once a year whether the premiums they paid for acquisitions, called goodwill, were a waste of money. B. Goodwill is not a good thing to have on a balance sheet. C. Because goodwill write-down accounting rules involve projections and judgments, companies have leeway for when to write down goodwill, and by how much. D. A and C E. All statements are true.
E. All statements are true.
The corporate valuation formula for the net worth method is what? A. Additional paid in capital plus retained earnings minus (goodwill - intangibles). B. Net worth plus retained earnings + (goodwill + intangibles). C. Total owners' equity (SE) + (goodwill + intangibles). D. Additional paid in capital plus retained earnings minus (goodwill + intangibles). E. Total shareholders' equity (SE) minus (goodwill + intangibles).
E. Total shareholders' equity (SE) minus (goodwill + intangibles).
Which statement below is false? A. For a firm to ignore social media communication by employees may be irresponsible. B. Many companies monitor employees' and prospective employees' social media activities, and have the legal right to do so. C. The bottom line is that companies have the legal right to monitor employees' conduct, but have the legal duty to do so only if there is sufficient reason for concern. D. Whenever a company discovers through social media that an employee or potential employee is Muslim, disabled, gay, or over 40 years old, and then denies a promotion or hires someone else, that "social media discovery information" could be the basis of a discrimination suit against the firm. E. All statements are true.
E. All statements are true.
What is Rudin's Law? A. When a crisis forces choosing among alternatives, most people panic. B. When a crisis forces choosing among alternatives, most people guess at the best option. C. When a crisis forces choosing among alternatives, most people do not choose the best option. D. When a crisis forces choosing among alternatives, most people choose a bad option. E. When a crisis forces choosing among alternatives, most people choose the worst possible one.
E. When a crisis forces choosing among alternatives, most people choose the worst possible one.
The U.S. Foreign Corrupt Practices Act (FCPA) governs _______ in the United States and has stepped up enforcement. A. scamming B. solicitation C. seduction D. lobbying E. bribery
E. bribery
In a BCG Matrix, ____________ is defined as the ratio of a division's own market share (or revenues) in a particular industry to the market share (or revenues) held by the largest rival firm in that industry. A. market share B. market share position C. rival market share D. rival market share position E. relative market share position
E. relative market share position
Which statement below is false? A. Many firms prefer to leave their cash outside the United States if it was earned outside the United States because to use those funds to pay dividends or purchase treasury stock, for example, would trigger a big U.S. corporate income tax payment. B. Going public is not recommended for companies with less than $10 million in sales because the initial costs can be too high for the firm to generate sufficient cash flow to make going public worthwhile. C. Increasingly, companies are issuing corporate bonds to buy back their own stock and to pay cash dividends to shareholders. This has become a concern. D. "Going public" means selling off a percentage of a company to others to raise capital; consequently, it dilutes the owners' control of the firm. E. All statements are true.
E. All statements are true.
Which statement below is false? A. Successful companies maintain tight, accurate financial controls. B. Successful companies have a voracious hunger for facts. C. Successful companies treat facts as friends and controls as liberating. D. The people at successful companies don't regard controls as an imposition of autocracy but as the benign checks and balances that allow them to be creative and free. E. All statements are true.
E. All statements are true.
Which statement below is false? A. The average age today for women in the United States to get married is 30 years old for those with a college degree, and 26 years old for those with only a high school degree. B. More women than men earn both undergraduate and graduate degrees in the United States. C. Women, on average, earn 25 percent less than men in the United States. D. Among 342 professions in the United States, women earn more than men in only nine. E. All statements are true.
E. All statements are true.
Which statement below is false? A. Too much pressure from top managers may result in lower managers contriving numbers they think will be satisfactory. B. The more that managers attempt to evaluate the behavior of others, the less control they have. C. In many organizations, strategy evaluation is simply an appraisal of how well an organization has performed. D. Too much emphasis on evaluating strategies may be expensive and counterproductive. E. All statements are true.
E. All statements are true.
What is the only way(s) for retained earnings on the balance sheet to decrease from one year to the next? A. If the firm spent more retained earnings than it earned in a year B. If the firm had positive net income for the year but paid out dividends greater than the net income C. If the firm incurred an earnings loss that year D. If the firm had zero net income for the year but paid out some dividends E. B, C, and D
E. B, C, and D
Does this textbook advocate a top-down or bottom-up approach to strategic planning? A. Top-down B. The text says it depends on the workforce. C. The text says it depends on the size of the firm. D. The text says it depends on the industry. E. Bottom-up
E. Bottom-up
__________ is the unique way an organization does business. It is the human dimension that creates solidarity and meaning, and it inspires commitment and productivity in an organization when strategy changes are made. A. Accountability B. Synergy C. Management D. Humanity E. Culture
E. Culture
Which statement below is false? A. Work row by row in developing a QSPM. B. There is no limit to the number of strategies that can be evaluated or the number of sets of strategies that can be examined at once using the QSPM. C. The QSPM weights are identical to those in the EFE Matrix and IFE Matrix. D. The magnitude of the difference between the STAS in a given set of QSPM strategic alternatives indicates the relative desirability of one strategy over another. E. In a QSPM, the range for Total Attractiveness Scores is 1 = not attractive, 2 = somewhat attractive, 3 = reasonably attractive, and 4 = highly attractive.
E. In a QSPM, the range for Total Attractiveness Scores is 1 = not attractive, 2 = somewhat attractive, 3 = reasonably attractive, and 4 = highly attractive.
When a firm buys more of its own common stock, what is the effect on the firm's earnings per share (EPS) value? A. The effect varies by industry. B. The effect varies by size of firm. C. There is no effect. D. It goes down. E. It goes up.
E. It goes up.
Americans tend to use first names instantly in business dealings with foreigners, but foreigners find this presumptuous. In what country among those listed below are first names are used only among family members and intimate friends, with even longtime business associates and coworkers shying away from the use of first names? A. England B. Australia C. Brazil D. South Korea E. Japan
E. Japan
Which statement below is not a Table 7-10 guideline for developing an organizational chart? A. Make sure the chair of the board is not also the CEO or president of the company. B. Avoid a functional-type structure for all but the smallest firms. C. Make sure the CEO of the firm does not also carry the title president. D. Make sure every executive has one boss, so lines in the chart should be drawn accordingly, assuring unity of command. E. Make sure only presidents of divisions report to the CEO.
E. Make sure only presidents of divisions report to the CEO.
____________ can be defined as the subdividing of a market into distinct subsets of customers according to needs and buying habits. A. Market targeting B. Target marketing C. Customer segmentation D. Product positioning E. Market segmentation
E. Market segmentation
What country has the highest Internet penetration among all countries in Africa, with 51 percent, followed by Egypt (36 percent), Kenya and Nigeria (28 percent), Senegal (18 percent), South Africa (17 percent), Angola (15 percent), Algeria (14 percent), Ghana (14 percent), and Tanzania (12 percent)? A. Tunisia B. Libya C. Congo D. Ethiopia E. Morocco
E. Morocco
In the corporate world, employees reporting any unethical violations they discover or see in the firm receive up to ______ percent of the proceeds of legal proceedings against firms for wrongdoing. A. 25 B. 35 C. 15 D. 55 E. 45
A. 25
The common stock of a firm that is owned by the firm itself is called what? A. Treasury stock B. Convertible stock C. Goodwill D. Preferred stock E. Retained earnings
A. Treasury stock
There are only about _______ elephants and ________ giraffes left in the world. A. 100,000; 80,000 B. 500; 5000 C. 1,000; 5,000 D. 1 million; 500,000 E. 10,000; 50,000
A. 100,000; 80,000
Regarding bonuses, what percent of U.S. companies have profit-sharing plans? What percent use stock price for bonuses? A. 30 percent; 16 percent B. 50 percent; 50 percent C. 16 percent; 30 percent D. 30 percent; 10 percent E. 10 percent; 16 percent
A. 30 percent; 16 percent
The Ethnologue lists ________ distinct languages being spoken. A. 6,909 B. 1,909 C. 3,909 D. 99 E. 19
A. 6,909
The International Labor Organization says ___ percent of Japanese men ages 60dash-64 work, compared with 57 percent of American men. A. 71 B. 31 C. 61 D. 51 E. 41
A. 71
__________ refers to the need for strategists to examine sets of trends, as well as individual trends, in evaluating strategies. A. Consonance B. Consistency C. Compatibility D. Coordination E. Feasibility
A. Consonance
In the United States , only two states currently require businesses to tell employees if their electronic communicationslong dash—including e-mails, instant messages, texts, photos, and websites visitedlong dash—are being monitored; the two states are _____ and _____. A. Delaware; Connecticut B. Virginia; Florida C. Hawaii, Oregon D. New York; California E. Texas; Alaska
A. Delaware; Connecticut
What formula below is correct for valuing a company using the price/earnings ratio method? A. Divide the market price of the firm's common stock by the annual earnings per share (EPS) and multiply this number by the firm's average net income for the past 5 years. B. Divide the market price of the firm's common stock by the firm's current ratio and multiply this number by the firm's average net income for the past 5 years. C. Divide the market price of the firm's common stock by the annual earnings per share (EPS) and multiply this number by the firm's average revenue for the past 5 years. D. Divide the market price of the firm's common stock by the annual earnings per share (EPS) and multiply this number by the firm's average sales for the past 5 years. E. Divide the market price of the firm's common stock by the firm's debt-to-equity ratio and multiply this number by the firm's average net income for the past 5 years.
A. Divide the market price of the firm's common stock by the annual earnings per share (EPS) and multiply this number by the firm's average net income for the past 5 years.
The _______________ is set to release guidance to employers regarding dos and don'ts related to corporate wellness programs. A. Equal Employment Opportunity Commission (EEOC) B. Office of Civil Rights C. Federal Department of Human Services D. Food and Drug Administration E. Occupational Safety and Health Administration (OSHA)
A. Equal Employment Opportunity Commission (EEOC)
When evaluating strategies, GAAP stands for what term? A. Generally accepted accounting principles B. Generally accepted auditing standards C. Generally accepted actuary procedures D. Generally accepted accounting procedures E. Generally accepted auditing principles
A. Generally accepted accounting principles
According to statistics from the United Nations, the rate of female participation in the labor force of one specific country is 34.2 percent, which is quite low, especially because women make up 42 percent of college graduates in that country. But women in this country with a college degree are expected to let their careers take a back seat to caring for their husband, children, and elderly parents. "The measures of daughterly guilt are much higher in women in this country than in other countries," says Sylvia Ann Hewlett, president of the Center for Work-Life Policy, a Manhattan think tank. What is the country? A. India B. Cuba C. Iran D. Mexico E. China
A. India
Linneman and Chandran report that contingency planning gives users, such as DuPont, Dow Chemical, Consolidated Foods, and Emerson Electric, three major benefits. What statement below is not one of the three? A. It enables managers to be proactive. B. It enables rapid responses to change. C. It prevents panic in crisis situations. D. It makes managers more adaptable by encouraging them to appreciate just how variable the future can be. E. It enables quick responses to change.
A. It enables managers to be proactive.
The _________ Matrix determines the relative attractiveness of various strategies based on the extent that key external and internal factors are capitalized on or improved. A. QSPM B. SPACE C. BCG D. SWOT E. Internal-External (IE)
A. QSPM
The capital of Brazil is making massive preparations for the 2016 Summer Olympics, including a $5 billion investment program to extend the subway system, improve railroads, and construct new highways. What city is the capital of Brazil? A. Rio de Janeiro B. Sao Paulo C. Buenos Aires D. Brazilia E. Cancun
A. Rio de Janeiro
What are the four types of strategies generated by a SWOT analysis? A. SO, WO, ST, and WT B. SW, ST, WO, and WT C. SO, ST, SW, and SS D. WO, WT, WS, and SS E. SO, SW, ST, and WW
A. SO, WO, ST, and WT
The World Bank and the International Finance Corporation annually rank 189 countries in terms of their respective ease of doing business (http://www.doingbusiness.org/rankings). The index ranks nations from 1 (best) to 189 (worst). What country is #1? A. Singapore B. Denmark C. The United States D. Hong Kong E. New Zealand
A. Singapore
What is the third strategy-evaluation activity? A. Take corrective actions. B. Re-formulate strategies. C. Revise the firm's vision, mission, and objectives. D. Reward both employees and managers appropriately. E. Develop projected financial statements.
A. Take corrective actions.
Does it pay off financially for a firm to be socially responsible? Which statement below is false? A. Economists generally say no. B. Barnett and Salomon say the relationship between corporate social performance (CSP) and corporate financial performance (CFP) is U-shaped; firms with low CSP have higher CFP than firms with moderate CSP. C. Barnett and Salomon say the relationship between corporate social performance (CSP) and corporate financial performance (CFP) is U-shaped; firms with high CSP have the highest CFP. D. B and C E. None of the above
E. None of the above
Which statement(s) below is false? A. The percentage of large companies in the United States with a chief operating officer (COO) has declined almost every year for a decade, to about 60 percent today. B. A recommended guideline in developing an organizational structure is to avoid letting a single individual be both chairman of the board and CEO of a company. C. A recommended guideline in developing an organizational structure is to avoid having a particular person reporting to more than one person in the chain of command. D. A, B, and C E. A and B
A. The percentage of large companies in the United States with a chief operating officer (COO) has declined almost every year for a decade, to about 60 percent today.
There are four important differences between the BCG Matrix and the IE Matrix. Which statement below is not a difference between the two matrices? A. The sizes of the circles and pie slices can vary. B. The IE Matrix requires more information about the divisions than does the BCG Matrix. C. The IE Matrix has nine quadrants versus four in a BCG Matrix. D. The x and y axes are different. E. The strategic implications of each matrix are different.
A. The sizes of the circles and pie slices can vary.
Which statement below is false? A. Countries, municipalities, and companies increasingly run the risk of being boycotted and "exposed" for direct or indirect wildlife-endangering practices. B. Only a few countries—such as Norway, Japan, and Russia—favor and engage in commercial whaling. C. Norway was soundly criticized globally in mid-2015 for launching whale-hunting expeditions, to follow up on their killing 729 whales the prior year, the most annual whale killings by Norway in two decades. D. A and B E. None of the above
E. None of the above
In EPS/EBIT analysis, from where does the tax rate percentage come? A. Use the company's prior year tax rate as revealed by dividing income before taxes by taxes paid off the firm's income statement. B. Use the company's prior year tax rate as revealed by dividing income before taxes by taxes paid off the firm's cash flow statement. C. Just use 10 percent for all financing options to better examine impact of debt versus stock options for raising capital. D. Estimate the company's future tax rate based on the company's strategies. E. Use the respective country's federal income tax rate.
A. Use the company's prior year tax rate as revealed by dividing income before taxes by taxes paid off the firm's income statement.
Is the following statement true? No federal laws in the United States currently prevent businesses from using GPS devices to monitor employees, and federal law does not require businesses to disclose to employees whether they are using such techniques. A. Yes B. No C. It depends on the particular industry. D. It depends on the particular state. E. C and D
A. Yes
In a BCG Matrix, divisions in Quadrant III (lower left) have a high relative market share position but compete in a low-growth industry. They are called _______________. A. cash cows B. laggards C. stars D. question marks E. dogs
A. cash cows
The Institute of Business Ethics (IBE) recently did a study titled "Does Business Ethics Pay?" and concluded that _______________. A. companies displaying a "clear commitment to ethical conduct" consistently outperform companies that do not display ethical conduct B. companies displaying a "clear commitment to ethical conduct" always outperform companies that do not display ethical conduct C. companies displaying a "clear commitment to ethical conduct" sometimes outperform companies that do not display ethical conduct D. companies displaying a "clear commitment to ethical conduct" usually outperform companies that do not display ethical conduct E. companies displaying a "clear commitment to ethical conduct" rarely outperform companies that do not display ethical conduct
A. companies displaying a "clear commitment to ethical conduct" consistently outperform companies that do not display ethical conduct
If a company has high customer loyalty, such as Harley-Davidson's, what rating would be appropriate for that factor in a SPACE Matrix? A. -1 on CP axis B. -1 on SP axis C. -7 on SP axis D. +1 on CP axis E. +7 on CP axis
A. -1 on CP axis
The top national statutory corporate tax rates in 2015 among sample countries ranged from ___ percent in Bermuda to ___ percent in the United Arab Emirates (UAE). A. 0; 55 B. 15; 45 C. 15; 55 D. 5; 55 E. 0; 45
A. 0; 55
Digital advertising spending on social media and mobile devices increased nearly ____ percent to $50 billion in the United States in 2014, comprising 28 percent of total ad spending in the nation. A. 37 B. 17 C. 27 D. 47 E. 7
B. 17
The percentage of persons age 65 or older exceeds 20 percent in Japan, Italy, and Germany—and will reach 20 percent in 2018 in France. In 2036, the percentage of persons age 65 or older will reach ____ percent in the United States and China. A. 30 B. 20 C. 10 D. 40 E. 50
B. 20
About _____ percent of all traffic on the Internet is fake, the result of bogus computers programmed to visit websites to take advantage of marketers who typically pay for ads whenever they are loaded when a user visits a webpage, regardless of whether the user is an actual person. A. 56 B. 36 C. 26 D. 16 E. 46
B. 36
Regarding corporate valuation, a conservative rule of thumb is to establish a business's worth as ____ times the firm's current annual profit. A. 10 B. 5 C. 12 D. 6 E. 3
B. 5
How many basic types of organizational structure are discussed in the chapter? A. 9 B. 7 C. 11 D. 5 E. 3
B. 7
___________ is defined by Black's Law Dictionary as the offering, giving, receiving, or soliciting of any item of value to influence the actions of an official or other person in discharge of a public or legal duty. A. Lobbying B. Bribery C. Solicitation D. Seduction E. Scamming
B. Bribery
Which statement below is false? A. Changes in strategy often require changes in an organization's structure. B. Changes in structure often require changes in an organization's strategies. C. Symptoms of an ineffective organizational structure include too many meetings being attended by too many people. D. Consumer goods companies tend to emulate the divisional structure-by-product form of organization. E. Structure dictates how an organization's resources will be allocated.
B. Changes in structure often require changes in an organization's strategies.
______ is a universal technical standard for environmental compliance that more firms are requiring not only of themselves but also of their suppliers and distributors. A. Environmental management system (EMS) B. ISO 14001 C. Sustainability report standard D. OSHA E. Environmental Protection Agency (EPA)
B. ISO 14001
What country's stock market was the top performer in 2014 among all Asian countries, and was also the top performer in 5 out of the last 7 years in Asia? A. The Philippines B. Indonesia C. Vietnam D. Taiwan E. Malaysia
B. Indonesia
Due to its dwindling workforce and aging population, what country is increasingly promoting women into managerial positions? Recent statistics show that 10 percent of managers in this country are women, compared with 31 percent in Singapore, 38 percent in Germany, and 43 percent in the United States. A. Brazil B. Japan C. Germany D. Italy E. Norway
B. Japan
Thomson Reuters annually compiles a list of the world's most innovative companies, using metrics that include patent activity, R&D investment, success rate, globalization, and influence. For the first time ever, what country (at 39 percent) overtook the United States (36 percent) in 2014 as having the most innovative companies in the world? A. Great Britain B. Japan C. Germany D. China E. South Korea
B. Japan
Which statement below is false? A. In some states, such as California, managers can be held personally liable for damages that arise from workplace romance. B. An organization probably should not strictly forbid workplace romance, because such a policy could be construed as an invasion of privacy, overbearing, or unnecessary. C. Workplace romance can be detrimental to workplace morale and productivity, for a number of reasons. D. Some workplace romances actually improve work performance, adding a dynamism and energy that translates into enhanced morale, communication, creativity, and productivity. E. None of the above
E. None of the above
Which statement below is false? A. Bluebirds are one of 76 songbird species in the United States that have dramatically declined in numbers in the last two decades. B. Japan has outlawed whaling operations in the Antarctic. C. Many New Zealanders, supported by Australians, are outraged about Japan's "large-scale" whaling operations in the Antarctic. D. Norway was soundly criticized globally in mid-2015 for launching whale-hunting expeditions, to follow up on their killing 729 whales the prior year. E. About 50 million sharks are killed every year solely to cut off (and sell) their fins. Although "shark-finning" was outlawed in U.S. waters in 2000, the law does not ban fin imports or serving the fins in food, so about 57 metric tons of fins are imported in the United States annually.
B. Japan has outlawed whaling operations in the Antarctic.
What three firms are discussed in the chapter as being exemplary users of solar panels? A. Ross Stores, Gap, and Buffalo Wild Wings B. Lennar, Wal-Mart, and Kohl's C. Best Buy, Toys-R-Us, and McDonald's D. Motel 6, Target, and Days Inn E. Marriott, Wal-Mart, and Hilton
B. Lennar, Wal-Mart, and Kohl's
What type of structure is the most complex of all the organizational designs or structures? A. Division by process B. Matrix C. Conglomerate D. Strategic business unit (SBU) E. Functional
B. Matrix
What is the second of the three strategy-evaluation activities? A. Review the underlying bases of strategy. B. Measure organizational performance. C. Calculate all relevant financial ratios and compare with industry norms. D. Establish clear objectives. E. Survey managers and employees for input information.
B. Measure organizational performance.
Which statement below is false? A. The United States is the only nation that imposes taxes on foreign earnings. B. None of the above. All statements are true. C. The United States requires companies to pay the difference between lower foreign taxes and the U.S. corporate tax rate of 35 percent when they bring their international earnings home. D. To avoid paying U.S. taxes on income made in other countries, many U.S. companies are cash-rich outside the United States, but cash-poor inside the United States. E. The territorial tax system that many other countries use allows companies to pay little to no taxes on foreign profits above what they have already paid abroad.
B. None of the above. All statements are true.
_________ is the broad term that refers to all other terms listed below. The term can apply to all divisions and departments (such as "We are an equal opportunity employer"), or to a single department ("Employees in this department must take at least one training and development course each year"). A. Rules B. Policies C. Methods D. Procedures E. Guidelines
B. Policies
Which statement below is false? A. Corporate wellness programs have proliferated in recent years due in part to the Affordable Care Act, which increased the maximum incentives and penalties employers may use to encourage employee well-being. B. The publisher of this book, Pearson plc, has a corporate wellness program called LifeVest, where the firm gives $500 to employees who improve their body mass index. C. Corporate wellness programs are largely aimed at reducing workforce obesity. D. Chevron and Biltmore provide exemplary wellness programs that think beyond diet and exercise and focus also on stress management by assisting employees with such issues as divorce, serious illness, death and grief recovery, child rearing, and care of aging parents. E. B and C
B. The publisher of this book, Pearson plc, has a corporate wellness program called LifeVest, where the firm gives $500 to employees who improve their body mass index.
Another term for product positioning is _______________. A. product marketing B. perceptual mapping C. perceptual marketing D. product mapping E. product segmentation
B. perceptual mapping
What would an appropriate SP axis number for Apple Inc.? A. + or - 7 B. + 1 C. - 6 D. - 1 E. + 6
C. - 6
Four companies—A, B, C, and D—have revenues of 1, 2, 3, and 4, respectively. Company C develops a BCG Matrix. What would the RMSP be for company C if all four firms have the same net income? A. 0.20 B. 0.25 C. 0.30 D. 0.50 E. 0.40
C. 0.30
The International Labor Organization says 71 percent of Japanese men ages 60dash-64 work, compared to _____ percent of French men in the same age group. A. 27 B. 37 C. 17 D. 57 E. 47
C. 17
More than 40 percent of businesses that send employees out on service calls today track the location and movement of those employees by their company-owned/-provided hand-held devices or vehicles. A. 50 B. 30 C. 40 D. 20 E. 10
C. 40
About what percent of Fortune 500 companies have a female CEO? A. 25 B. 10 C. 5 D. 15 E. 20
C. 5
If a corporation's profits are $120, and its three divisions have $30, $80, and $10 of profits respectively, and equal revenues, what percent is the pie slice in Division 3? A. 12.5 B. 25.0 C. 8.33 D. 33.3 E. None of the above
C. 8.33
Developed in the early 1990s by Harvard Business School professors Robert Kaplan and David Norton, and refined continually through today, the ______ is a strategy-evaluation and control technique. A. value chain B. benchmarking C. Balanced Scorecard D. financial ratio analysis E. Six Sigma
C. Balanced Scorecard
The basic premise of _____________ is that firms should establish objectives and evaluate strategies on criteria other than financial measures. A. value chain analysis B. benchmarking C. Balanced Scorecard D. reengineering E. cost-benefit analysis
C. Balanced Scorecard
Going clockwise beginning with the top axis, what are the four axes of a SPACE Matrix? A. CP, FP, IP, and SP B. AP, BP, CP, and DP C. FP, IP, SP, and CP D. IP, SP, CP, and FP E. SP, CP, FP, and IP
C. FP, IP, SP, and CP
________ is an authoritarian society in terms of schools, churches, businesses, and families. Employers seek workers who are agreeable, respectful, and obedient, rather than innovative, creative, and independent. Workers tend to be activity-oriented rather than problem solvers. A. France B. Argentina C. Mexico D. Canada E. Israel
C. Mexico
Which statement below is false? A. Prior research suggests that being unethical is abnormal, rare, and aberrant behavior perpetrated by people who are abhorrent. B. Donald Palmer recently reported that misconduct is a normal phenomenon and that wrongdoing is as prevalent as rightdoing. C. Donald Palmer recently reported that misconduct is most often done by people who are primarily good, ethical, and socially responsible. D. B and C E. None of the above
E. None of the above
Which statement below is false? A. Successful strategists do a lot of chatting and informal questioning to stay abreast of how things are progressing and to know when to intervene. B. Successful strategists lead strategy but do not dictate it. They give few orders, announce few decisions, depend heavily on informal questioning, and probe and clarify until a consensus emerges. C. Successful strategists ensure that all major power bases within an organization are represented in, or have access to, top management. D. A & C E. None of the above
E. None of the above
